High electricity prices have led to the view that electricity traders have made an easy and, above all, large profit, which surely remains at the company's disposal. A little on where it is generated and where it goes. I will start with the latter question.

127 million euros, 98 million euros, 70 million euros – these are the profits of “Latvenergo” that have reached the people of Latvia over the last three years through the company's payments to the state budget, i.e., dividends.

In total, over the last five years, this amounts to 585 million euros, and a significant portion of these funds has been earned in neighbouring countries and goes into the state budget, and indirectly, to the people of Latvia. This can only be provided by a company that operates successfully in the market, under competitive conditions, rather than a regulated non-profit entity.

The rise in electricity prices is impressive, but it does not mean fat years for its producers and traders. Today, a/s “Latvenergo” is publishing its half-year results, and for some, this will spark a desire to comment on profits – whether there should be any at all, and where and how they should be spent. However, there are two important things worth remembering. Firstly, next year we will again pay dividends that will reach the public – teachers, doctors, and employees of security and social services, financially supporting even those who are most in need – vulnerable users. Secondly – typically, the profit in the first half of the year is significantly higher than in the second half.

Latvenergo operates not only in Latvia but throughout the Baltics, competing with other energy market participants. It is also worth remembering that the money earned in Latvia by foreign companies flows out of our country. Yes, we do the same. This year we have significantly increased our customer base in neighbouring countries – by 80,000 – and we have also sold 35% of the total volume of electricity sold in the Baltic states outside of Latvia. This profit reaches the Latvian public both directly as dividends and indirectly as investment in the company's development.

Sometimes the view is expressed that everyone would benefit if “Latvenergo” operated without profit. However, without business principles, development is impossible. Then the company would have no funds for the maintenance and development of hydroelectric and thermal power plants, and these funds would have to be taken from the state budget. This would mean stagnant production technologies with no capacity to build new renewable energy facilities, which, through profit, generate income for the entire Latvian public. (...)